Snake oil

Written By: - Date published: 7:13 pm, September 1st, 2007 - 1 comment
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One comment on “Snake oil”

  1. Sam Dixon 1

    So, what would John Key’s ‘lower rate of Government spending growth’ actually mean? It would, at least, mean the Government being unable to afford to improve the services it provides but possibly maintain current levels of service. More likely, it would mean that inflation and population growth would be used as passive tools to gradually erode real per capita levels of service provision.

    Its an incredibly bald-faced lie from Key… he nows that when he says ‘no cut in government spending lower rate of increase of government spending’ people hear ‘no service cuts and stop adding policy analysts’ but, of course, that’s not what it means at all.

    With inflation and a growing population, government spending must rise simply to maintain real per capita levels, and, thereby, continue providing existing services… that is where most of the increase since 2000 has gone (don’t have the figures in front of me but I worked it out once, population growth and inflation accounted for something like 70% of the increase in nominal Government spending over the period)… and people do not want the Government merely to maintain exisitng levels of service but to improve them.. better roads, more docotors, improved medical care, better schools, all of which costs money.

    It was a real shame that Campbell missed the chance to expose Key on that.

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